A must read guide to save you on hours reading blogs and magazines for the beginner to intermediate seeking real investment property advice.
There is so much information out there that it can almost cause more harm than good. If you’re anything like I was you’re sick of getting sent in circles and just want proven investment property advice used by the best in the business. Well here it is, pull up a pew and we will have you ready to go faster than you can finish your coffee.
No matter who you are or what you know, there isn’t one set rule to property investment. Residential real estate just like any other kind of investment requires an individual approach. It is imperative that you have a clear understanding of your current position and goals so that an achievable strategy can be put in place.
We recently picked the brains from the wealth of knowledge in APR HQ to get you on track.
1. Remember this isn’t personal.
We have seen and heard numerous instances of the heart winning out over the head when it comes to making an investment decision. This can be difficult to overcome but take it from us, if you want to see real success with your investments this should be the first hurdle you cross.
Many of us approach property from a personal place. Whether there is an attachment to a childhood home or your first property as an owner-occupier, it has never been an entirely common sense decision and often resurfaces a lot of positive or negative emotions.
When it comes to investment property advice that provides a calculated and strategic approach to investing, it is essential to remove the emotion from the equation. It’s not about your own personal tastes anymore, what your motivation must become now is appealing to your target market. (See point 3).
It is imperative that you see housing as a commodity with the potential for profit and revenue and remember that you don’t need to like the colour of the roof or layout of the kitchen. Approach the purchase with sound logic from a fact based foundation and you will soon be seeing the kind of results that got us into the game in the first place.
2. Create a strategy and stick to it
When starting out you are going to need a proven investment strategy that can be your guiding rail through your journey that aligns with your goals and time frame.
You need to be able to see through too good to be true schemes that spruce a get rich quick solution and start employing the tortoise-like slow and steady approach that will ensure you heavily outlast the fast shooting cowboys of the industry.
Different processes will allow you to achieve different goals and we are here to help you along with that process with investment property advice that actually works.
3. Know your target market
This one ties back to the heart vs brain approach to investment.
Property investment is a business proposition so having an understanding of what the market is looking for and what needs you can meet with your property is going to ensure both that you have a constant demand for your property but also that you can reap the maximum revenue as well.
Being well aware of your target demographic is essential when it comes to ‘selling’ your product. This doesn’t apply so much to your renters, whilst they are a crucial key to maintaining cash flow, it is the owner-occupiers who drive the market and ultimately determine the value of your property.
It is a must before making a purchase that you are fully versed on who the tenants and homebuyers are in your location.
Once you understand both groups you are then in a position to make an educated decision balancing cash flow with long-term capital gain.
4. Build your network
When embarking on any new endeavour, surrounding yourself with those who have already walked the walk can be a massive leg up.
Just being on this blog shows that you are looking to those who have been there before and that is a great sign.
With the dominance of social media it has never been easier to reach out to those who have the knowledge and experience as you start to put the pieces together and in many cases (our team do it every day) experienced professionals are more than happy to point you in the right direction.
Many sites like Linked In, Facebook and Property forums are also a great place to meet fellow newbies and start to motivate, share tips and insights as you begin your own property journey.
5. Get informed!
Building your portfolio isn’t as simple as buying and selling your way to success. There are countless intricate details that must be understood or you could find yourself back where you started.
Knowing things like investor tax perks and current interest rates seem simple enough but we have seen many a beginner investor bite-off more than they can chew and not account for future changes.
Going back to number 4, by building your network with trusted experts including your accountant, solicitor, property strategist and mentors, allows yourself to be able to make better decisions.
Aside from technical knowledge, another disadvantage to those starting out is a limited negotiating skillset.
Being able to negotiate not just the final sale price, but also various contract terms is a crucial piece of the investment pie.
We don’t however, expect you to become an expert overnight, everyone has to start somewhere and we are here to help.
If you would like to organise a face to face consultation with one of our Property experts you can arrange an appointment through our enquiry form or speak with one of our Support Specialists to find out more about how we can bring you closer to achieving your financial dreams.